SENATE SPECIAL SESSION COMMITTEE ON REVENUE

 

 

June 29, 2002 Hearing Room A

2:45 p.m. Tape 21

 

MEMBERS PRESENT:            Sen. Ted Ferrioli, Chair

Sen. Joan Dukes

Sen. Tom Hartung

Sen. Cliff Trow

 

 

MEMBER EXCUSED:            Sen. Bill Fisher

 

 

STAFF PRESENT:                  Dallas Weyand, Legislative Fiscal Analyst

Patsy Wood, Administrative Support

 

 

MEASURE/ISSUES HEARD:            SB 1027     Public Hearing and Work Session

                                                HB 4062A Public Hearing and Work Session

 

 

These minutes are in compliance with Senate and House Rules.  Only text enclosed in quotation marks reports a speaker’s exact words.  For complete contents, please refer to the tapes.

 

TAPE/#

Speaker

Comments

TAPE 21, A

004

Chair Ferrioli

Calls the meeting to order at 2:50 p.m. and opens a public hearing on SB 1027 which provides that Public Employees Retirement Board must establish separate account within Public Employees Retirement Fund for each lump sum payment made against accrued unfunded liabilities attributable to employees of certain public employers.

SB 1027 PUBLIC HEARING

018

Dallas Weyand

Legislative Fiscal Analyst.  Introduces the –4 and –5 amendments to SB 1027 (EXHIBITS A & B). 

037

Chair Ferrioli

Asks for clarification that this is a full-disclosure, truth-in-accounting, and basic chart-of-accounts segregation type of bill.

039

Weyand

Responds affirmatively.

040

Chair Ferrioli

Asks who brought forward this legislation.

047

Ken Armstrong

Seattle NW Securities.  Replies that Seattle NW Securities and the Oregon School Boards Association brought forward this request.

050

Chair Ferrioli

Asks if it is their desire that these accounts be tracked, segregated and disclosed separately.

052

Armstrong

Says, yes, as a result of SB 134 (2001) and SB 1004 (first special session) which insures that when lump sum payments are made, the interest earned (or the losses) would be attributed to those specific accounts and not to the system as a whole.  Notes that this is a collaborative effort with PERS, employers and employee community.  Supports the –5 amendments.

064

Weyand

Describes the –4 amendments and –5 amendments in detail.

092

Sen. Trow

Asks if these amendments contradict each other.

093

Weyand

Replies, no.

098

Chair Ferrioli

Refers to documents that he asked to be produced (EXHIBITS C & D) showing potential savings in a buyout plan if people are not currently employed in a PERS membership organization.  Wonders if it is imperative for PERS to maintain an account for five years after separation of an employee, if the person is non-vested. 

161

Chair Ferrioli

Closes the public hearing on SB 1027 and opens a work session.

166

Sen. Trow

MOTION:  Moves to ADOPT SB 1027-4 amendments dated 06/20/02.

 

 

VOTE:  4-0-1

EXCUSED:  1 - Sen. Fisher

169

Chair Ferrioli

Hearing no objection, declares the motion CARRIED.

 

170

Sen. Trow

MOTION:  Moves to ADOPT SB 1027-5 amendments dated 06/24/02.

 

 

VOTE:  4-0-1

EXCUSED:  1 - Sen. Fisher

173

Chair Ferrioli

Hearing no objection, declares the motion CARRIED.

 

174

Sen. Trow

MOTION:  Moves SB 1027 to the floor with a DO PASS AS AMENDED recommendation.

 

 

VOTE:  4-0-1

EXCUSED:  1 - Sen. Fisher

178

Chair Ferrioli

Hearing no objection, declares the motion CARRIED.

SEN. DUKES will lead discussion on the floor.

 

187

Chair Ferrioli

Closes the work session on SB 1027 and opens a public hearing on HB 4062A.

HB 4062A PUBLIC HEARING

191

Dallas Weyand

Legislative Fiscal Analyst.  Explains HB 4062A relating to judicial review of certain rules of the Public Employees Retirement Board.

222

Sen. Trow

Asks for the origin of bill.

225

Chair Ferrioli

Indicates he is not sure who brought forward the bill, but earlier PERS hearings indicated it would be in everyone’s best interest to expedite judicial review of litigation to get answers quicker.  Asks if this action would prejudice action pending before any court.  Feels PERS will take actuarial review of its own accord.

267

Sen. Trow

Asks if there is opposition to this legislation.

268

Chair Ferrioli

Indicates that no one signed up to testify in opposition.

273

Chair Ferrioli

Closes the public hearing on HB 4062A and opens a work session.

276

Sen. Trow

MOTION:  Moves HB 4062A to the floor with a PASSAGE OF THE A-ENGROSSED MEASURE recommendation.

 

 

VOTE:  4-0-1

EXCUSED:  1 - Sen. Fisher

280

Chair Ferrioli

Hearing no objection, declares the motion CARRIED.

SEN. DUKES will lead discussion on the floor.

 

286

Chair Ferrioli

Closes the work session on HB 4062A.

289

Chair Ferrioli

Recesses the committee to the call of the chair at 3:07 p.m.

 

Submitted By,                        Reviewed By,

 

 

 

Patsy Wood,                        Kim Taylor James,

Administrative Support                        Office Manager

 

 

EXHIBIT SUMMARY

 

A – SB 1027 –4 amendments, dated 6/20/02, submitted by staff, 1 pg.

B – SB 1027 –5 amendments, dated 6/24/02, submitted by staff, 1 pg.

C – SB 1027, Inactive PERS Member Chart, dated 6/04/02, submitted by Sen. Ferrioli, 1 pg.

D – SB 1027, Enhanced Lump Sum PERS Payment Memo, dated June 17, 2002, submitted by Sen. Ferrioli, 3 pgs.